The Michaels Organization Closes $230 Million Financing for University of San Diego Student Housing Development

SAN DIEGO, Sept. 4, 2026 — The Michaels Organization has completed the financial closing on Presidio Terrace Apartments, a $230 million student housing development at the University of San Diego, the Camden, N.J.-based firm announced Thursday. Harrison Street provided equity financing for the project, while KeyBank provided construction financing. The development will deliver 321 apartments totaling approximately 700 beds across nine interconnected mid-rise buildings on the university's campus at 5702 Linda Vista Road.

Project Scope and Design

Presidio Terrace Apartments will span approximately 350,000 square feet across a roughly 3.5-acre site on USD's west campus, replacing a 42-unit, 1970-vintage complex that went offline for construction in January 2026. The new development is designed to reflect the university's historic 16th-century Spanish-style architecture and will serve as a new gateway to campus along Linda Vista Road.

Unit layouts will range from studios to four-bedroom apartments, all featuring full kitchens. Planned amenities include an indoor/outdoor fitness center, lounge and study spaces, a juice bar, grab-and-go food options, rooftop decks with views of Mission Bay, an outdoor media wall, and underground parking. A scenic pedestrian bridge will connect the residential complex directly to the center of campus.

At $230 million for 321 units, the development implies a cost of approximately $716,500 per apartment and roughly $329,000 per bed — figures consistent with urban, on-campus, amenitized student housing in California, where construction costs and complex design elements, including structured parking and a pedestrian bridge, contribute to elevated per-unit costs.

Capital Structure and Key Parties

Harrison Street, an investment management firm with a significant focus on student housing, supplied the equity component of the capital stack. KeyBank is providing construction financing. The Michaels Organization is serving as developer and will provide asset and property management upon completion.

"Harrison Street is a leader in student housing, and Michaels has had a strong and productive relationship with them for years," said Michael Flanagan, Michaels' Chief Investment Officer. "We are thrilled to have another opportunity to partner with them, especially on such an exciting project as Presidio Terrace Apartments."

Raoul Amescua, Executive Vice President at The Michaels Organization, is serving as lead developer on the project. "We are grateful to the University of San Diego for their vision and partnership in expanding high-quality student housing on their campus," Amescua said.

USD selected The Michaels Organization through a competitive request-for-proposal process in 2022. The firm has been active in student living development since 2010, with on- and off-campus projects across the country.

Development Team and Timeline

The development team assembled by The Michaels Organization includes Carrier Johnson + CULTURE as architect, CBG Building Company as general contractor, McCullough Landscape Architects for landscape design, and Rick Engineering. The Michaels Organization will retain asset and property management responsibilities after delivery.

Construction is underway, with completion targeted for July 2029 and student move-ins expected by August 2029, in time for the fall 2029 semester. The project will serve undergraduate, graduate, and law school students at USD.

The development replaces a 42-unit, two-story complex built in 1970 that offered one-bedroom, one-bathroom furnished apartments. The new project represents a significant densification of on-campus student housing capacity, increasing the unit count from 42 to 321 and adding purpose-built amenities and a direct pedestrian connection to the academic core of campus.

Market Context

On-campus, institutionally backed student housing development has drawn sustained interest from equity investors and construction lenders in recent years, driven by enrollment growth at selective universities and aging existing housing stock. The Presidio Terrace Apartments transaction reflects the continued appetite among institutional capital partners, including Harrison Street, for purpose-built student housing in supply-constrained markets. The Michaels Organization has also been active in other specialty living sectors, including privatized military housing, positioning the firm as a programmatic developer for institutional clients with complex, long-dated housing needs.

Sources

The Michaels Organization — Official Announcement, Sept. 4, 2026